Complaints against bailiffs shoot up in Wales as money problems bite

Complaints against “bullying” bailiffs have rocketed as money problems hit the poorest hard, it has been claimed.

Complaints against “bullying” bailiffs have rocketed as money problems hit the poorest hard, it has been claimed.

The Citizens Advice Bureau says it saw accusations levelled at the debt collectors swell from 1,648 in 2011 to 2,637 last year – a 60% rise.

They claimed householders had been:

* Threatened with having their kids taken from them;

* Harassed into handing over cash they did not owe; and

* Pressured into taking out loans they would struggle to pay back.

The startling claims come as the UK government announces new measures to “clean up” the industry and protect vulnerable debtors.

Erika Helps, chief executive of Rhondda Cynon Taf CAB and chairman of the bureau’s equalities and process committee in Wales, said: “More people are in debt, more people are leaving things longer.

“For the last four quarters to the end of September the bureau in Wales has dealt with 2,637 complaints.

“Comparing that to the same four quarters previously it was an overall rise of 60%.”

She said some of the examples she had heard were “amazing”.

“The debt team were talking the other day about a case where someone was threatened with having their children taken into care,” she said.

Debt advisor Kelly Williams said she was “inundated” with complaints about bailiffs and said at any one time she could be juggling 15 separate cases.

“In one case, I had a young lady who was heavily pregnant and they were putting enormous pressure on her to pay her debt in full,” said Ms Williams.

“She was a single parent with very low income.

“In that particular case we were looking at over £900 owed.

“Where she was to find that money is beyond me.”

That debtor is now declaring herself bankrupt.

“They hope that they can bully people into borrowing money or getting money from relatives,” Ms Williams added.

Sometimes, bailiffs gain entry because householders do not know they can refuse it. It is then that some bailiffs can start threatening to take goods.

“They will say they can take all the goods in the property rather than individual items – that’s not legal,” Ms Williams said.

In one case she cited, bailiffs arrived at a property where the tenant’s landlord owed money.

“The bailiffs managed to threaten and get the tenant at the property to pay the fine,” said Ms Williams.

“The landlord did not live at the property and the tenant is now in the process of complaining to get her money back.

“They entered her property and threatened to remove goods. Because it was a furnished property they were the landlord’s goods.”

Ms Helps said bailiffs were now being used more because “it is more difficult for creditors to recover their money” because of the long-lasting economic downturn.

“People are coming to us for help as a result,” she said.

“We would rather people come to us than struggle. People should come and get help before the point that things reach bailiffs.

“But creditors are moving to use bailiffs more quickly.”

In England, the Local Government Ombudsman recently looked at the use of bailiffs by councils and found some were employing dodgy practices and pushing families deeper in debt.

There has been no equivalent study in Wales but the current financial climate has impacted on the numbers CAB are seeing.

“Debt is only a problem when you cannot pay what you owe,” Ms Helps said.

“We have seen lots of people who have gone through redundancy.

“Previously manageable outgoings have become a debt problem.

“We have seen people coming for help when circumstances have changed.”

And things could still get worse, she said.

“With the changes to benefits we are going to see more people in debt and more housing repossessions.” she said.

Paul Ridge, a human rights and civil liberties lawyer, said: “Sharp practice has been a feature of bailiffs for too long.”

He cited instances of bailiffs charging for the cost of van hire when they were using their own everyday vehicle.

“They have limited powers,” said Mr Ridge.

“They cannot break in and they are not allowed to take certain goods like basic household items and tools for people’s employment.

“Their primary role, I’m afraid, is often as more of a threat and intimidation.

“Because people are unaware of the limited powers of bailiffs they sometimes cave in.

“What CAB report is people then borrowing from loan sharks and robbing Peter to pay Paul.

“This does not manage the problem.

“The reality is that bailiffs are a bit of an anomaly in the 21st century.”

But former bailiff Paul Caddy, president of industry body the Civil Enforcement Association, said the group had not seen an increase in complaints.

He admitted “every industry faces cases where people are not meeting standards” but said problems were sometimes made worse by the attitudes of homeowners towards bailiffs.

“Often you would be sent to an address where someone has moved,” Mr Caddy said.

“That does lead to complaints and some of that is driven by people’s attitudes, how you react to an enforcement officer.”

Mr Caddy welcomed the government reforms for the industry, adding: “It will bring clarity and transparency to the law and that is in everybody’s interest.”

Next page: Bailiffs will be regulated under new laws

Bailiffs will be regulated under new laws to “clean up” the industry and protect vulnerable debtors, the Government has announced.

New rules will stop late-night visits to collect debts and restrictions on what property can be seized are being introduced.

Bailiffs will also be banned from entering homes when only children are present and they will no longer be able to set their own fees.

New safeguards will also prevent them from using force against people who owe money, according to the Ministry of Justice.

Under the changes, bailiffs will be forced to undergo a mandatory training and certification scheme and those who breach the new rules will be barred from the industry.

Justice Minister Helen Grant said: “For too long bailiffs have gone unregulated, allowing a small minority to give the industry a bad name. Too many people in debt have had the additional stress of dealing with aggressive bailiffs who often charge extortionate fees.

“These new laws will clean up the industry and ensure bailiffs play by the rules or face being prevented from practising. They will also make sure businesses and public bodies can collect their debts fairly.”

Citizens Advice Bureau chief executive Gillian Guy said: “This is long overdue and we certainly welcome the fact that the Government has recognised that it’s an issue.

“We get tens of thousands of complaints every year and that’s set to get worse because when council tax benefit changes there will be more people, probably, subject to bailiff action.

“It’s a whole range of issues. It starts with not understanding what bailiffs’ rights are, and that leaves bailiffs open to tell people what they interpret their rights as.

“We’ve had people come to us saying that bailiffs have sought to seize the tools that they use for work or their children’s toys or even pets, and clearly that’s a misinterpretation of what the rules are.”

Labour justice spokesman Rob Flello said: “These are much-needed reforms. We need to see the Government bring forward legislation quickly and, provided it addresses our concerns, we will work constructively to help make it happen.

“At a time of great hardship for so many families, the last thing they need to fear is the knock at the door from an unscrupulous bailiff, whose actions do so much to damage the reputation of those striving to keep up the standards of the rest of the profession.”

Next page: How my problems spiralled out of control and bailiffs came knocking

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